Highest Low-Minimum Money Market Accounts

There are now 3 money market bank accounts with low minimum deposit requirements and with interest rates over 4.00%. The latest bank to join this group is Giantbank.com. The interest rate of its money market account is 4.10% APY.

All 3 of these money market accounts have only a $1,000 minimum deposit requirement to earn the high rate. Unlike EmigrantDirect savings account, these money market accounts have check writing privileges. That's one of the main differences between a savings account and a money market account. Giantbank.com provides a good summary of this.

The only problem that I have with these banks is that they don't provide bank-to-bank ACH transfer capability like EmigrantDirect or ING Direct. To transfer using ACH, you'll have to initiate the ACH transfer from another bank. I wonder why this ACH transfer capability isn't yet widespread.

The top money market account remains at UmbrellaBank with a rate of 4.15%. UmbrellaBank.com also has what appears to be the best online banking website. The one drawback is that it doesn't have a good financial rating from Bankrate.com (only 2/5 stars). The other two banks have ratings of 4/5 stars.

GMAC also has a good financial rating of 4/5 stars at Bankrate.com. I have more about GMAC Bank in this post that I wrote when GMAC money market account reached 4%.

GMAC does tend not to have the highest MM rates. Although, it has been much better than ING Direct. In my opinion, I would be willing to accept a little lower MM rate in return for ACH in/out and a good reputation.

Had Demand Notes for several years with the old GMAC...which went belly up during the Big R. I got out about a year before. Suggest one look at management and see who is "new" as well as who they are lending to given the old arrangement with GM loans died...notwithstanding FDIC.